Exercise 6.3
Using DECB-8, decompose total poverty according to the socio-economic categories SECT, TYPE and OCCUP.

Answer
STEP 1: Initialising  the sampling weight: EDIT|Set Sample Design

 

  • After choosing the appropriate variable(s), click on  the button OK.

STEP 2: Use the DAD Application: DECOMPOSITION|FGT : Decomposition by groups

  • After choosing the appropriate variable(s) and parameters, click on the  Compute button.

RESULTS
  • Group variable = SECT

FGT (Poverty Decomposition)

Session Date Thu Jul 08 13:01:45 EDT 2004
Execution Time 0.015 sec
FileName DECB-8.daf
OBS 1000
Sampling Weight WHHLD
Variable of interest EXPEQ
Size variable SIZE
Group variable SECT
Group Number 1-2-3
Option Normalised = NO
Parameter α= 0
Estimate 0,47318047
  (0,02658057)
Poverty Line 373,00000000
  (0,00000000)

Group #

Estimate

Proportion

Absolute Contribution

Relative Contribution

1

0,24631289
0,20143808
0,04961680
0,10485808
 
(0,04958618)
(0,01832379)
(0,01198055)
(0,02484863)

2

0,54770958
0,68123347
0,37311810
0,78853238
 
(0,03364104)
(0,02195825)
(0,02724648)
(0,03121864)

3

0,42994937
0,11732902
0,05044554
0,10660952
 
(0,05865951)
(0,01332281)
(0,00973199)
(0,02066657)

TOTAL

---
1.0
0,47318047
1.0
 
 
(0.00)
(0,02658057)
(0.00)

 
Group variable = TYPE

FGT (Poverty Decomposition)

Session Date Thu Jul 08 13:01:45 EDT 2004
Execution Time 0.015 sec
FileName DECB-8.daf
OBS 1000
Sampling Weight WHHLD
Variable of interest EXPEQ
Size variable SIZE
Group variable TYPE
Group Number 1-2-3-4
Option Normalised = NO
Parameter α= 0
Estimate 0,47318047
  (0,02658057)
Poverty Line 373,00000000
  (0,00000000)
Session Date Tue Jul 06 14:12:05 EDT 2004
Execution Time 8.109 sec
FileName DECB-8.daf
OBS 1000
Variable of interest EXPEQ
Size variable SIZE
Group variable TYPE
Group Number 1-2-3-4
alpha 0
Estimate 0.47318047
  (0.02658057)
Poverty Line 373.00000000
  (0.00000000)

Group #

Estimate

Proportion

Absolute Contribution

Relative Contribution

1

0,05817377
0,01717010
0,00099885
0,00211093
 
(0,03372933)
(0,00252972)
(0,00059953)
(0,00127381)

2

0,41159850
0,10779532
0,04436839
0,09376632
 
(0,06032875)
(0,01249623)
(0,00923255)
(0,01957249)

3

0,42540124
0,21465285
0,09131359
0,19297835
 
(0,04980353)
(0,01956769)
(0,01430540)
(0,02976472)

4

0,50955260
0,66038233
0,33649951
0,71114415
 
(0,03489809)
(0,02268142)
(0,02746434)
(0,03470447)

TOTAL

---
1.0
0,47318047
1.0
 
 
(0.00)
(0,02658057)
(0.00)

 
Group variable = OCCUP

FGT (Poverty Decomposition)

Session Date Thu Jul 08 13:01:45 EDT 2004
Execution Time 0.015 sec
FileName DECB-8.daf
OBS 1000
Sampling Weight WHHLD
Variable of interest EXPEQ
Size variable SIZE
Group variable OCCUP
Group Number 1-2-3-4-5-6-7
Option Normalised = NO
Parameter α= 0
Estimate 0,47318047
  (0,02658057)
Poverty Line 373,00000000
  (0,00000000)
Session Date Tue Jul 06 14:13:12 EDT 2004
Execution Time 0.063 sec
FileName DECB-8.daf
OBS 1000
Variable of interest EXPEQ
Size variable SIZE
Group variable OCCUP
Group Number 1-2-3-4-5-6-7
alpha 0
Estimate 0.47318047
  (0.02658057)
Poverty Line 373.00000000
  (0.00000000)

Group #

Estimate

Proportion

Absolute Contribution

Relative Contribution

1

0,40750879
0,06790209
0,02767070
0,05847811
 
(0,09877651)
(0,01256513)
(0,00945439)
(0,01974216)

2

0,59453303
0,56999975
0,33888370
0,71618277
 
(0,03680358)
(0,02495053)
(0,02725499)
(0,03540577)

3

0,34326643
0,06506592
0,02233495
0,04720175
 
(0,08502054)
(0,01073263)
(0,00720456)
(0,01518131)

4

0,20350870
0,05826336
0,01185710
0,02505830
 
(0,06598003)
(0,01109168)
(0,00399317)
(0,00850103)

5

0,22358248
0,14057040
0,03142908
0,06642091
 
(0,06067049)
(0,01552399)
(0,01019975)
(0,02124721)

6

0,46580440
0,02529911
0,01178444
0,02490474
 
(0,11289220)
(0,00560968)
(0,00446373)
(0,00946248)

7

0,40083033
0,07289997
0,02922052
0,06175344
 
(0,06965549)
(0,00994178)
(0,00704218)
(0,01499023)

TOTAL

---
1.0
0,47318047
1.0
 
 
(0.00)
(0,02658057)
(0.00)